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City Strategies

Cities can pursue several different strategies when it comes to jumpstarting solar energy. Here's a few:

Solar On Public Buildings

The best way for cities to support solar is to walk the walk, and put solar on public buildings. There are two basic financing strategies to make a solar purchase cost effective:

  1. Bundle the solar with energy efficiency. Energy efficiency has a much quicker payback. By combining it with solar, it is possible to develop revenue positive projects. See the Moscone Center case study (PDF) for an example.
  2. Instead of buying a solar system, buy solar electricity. Staples (PDF) found the benefits of buying solar by the kWh compelling, and recently signed contracts to buy the output of two 280 kW systems on their distribution center roofs at rates below utility rates. This method also allows municipalities, which don't have tax burdens, to utilize the 30% federal tax credit. The City of San Diego recently signed a 5 MW deal (PDF) below utility rates. We've posted the RFP (PDF) and related documents exhibit A (PDF) and exhibits B-G (PDF).
City Leadership for Solar on Private Buildings

After putting solar on their own buildings and leading by example, Marin County built on that momentum with an innovative program (PDF) for identifying local business owners with solar-friendly roof-space, and educating them about the benefits of solar. And check out this paper on the role the city permitting process can play in removing roadblocks to solar.

Solar on New Home Developments

Including solar on new home developments makes sense for a lot of reasons. First, installation is cheaper at the time of construction. Secondly, mortgages are the best kind of financing available, and in many instances when the cost of a solar system is wrapped into a 30-year mortgage, the utility bill savings are larger than the incremental increase in mortgage payments — meaning on net, solar houses can be cheaper to live in. Finally, if done on large developments, utilities can account for the difference and potentially make choices in the grid infrastructure that may save all ratepayers money.

Given these benefits, some municipalities have chosen to require solar for certain developments. The city of Roseville, California is one; check back for a case study.

The city of San Diego chose a carrot approach: they've developed an innovative permitting program that uses the evil of bureaucracy for the public good. They incentivize solar through the permitting and inspection process: permit applications for any residential construction projects generating more than 50% of expected load with on-site renewables, or commercial projects generating more than 20%, go to the top of the pile and are processed first. This is a cost-free way to incentivize the inclusion of solar energy solar energy into housing developments. For San Diego, it means more solar energy projects will happen. For developers, it means they can avoid expensive delays on their permitting and inspections.